Building home browsing pc segment


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Building home browsing pc segment

  1. 1. Tariq Kareem MB111029Adnan Shabbir MB111Qasim Mushtaq MB111081Group Members
  2. 2. Case StudyBuilding Home Browsing PCSegment
  3. 3. • The use of internet and PC’s is increasing day by dayeverywhere ,for household use for corporate sectorand in industries, computer hardware and softwarenow become life line of every citizen An immenseincrease in the demand of WiFi and WiMAX enableddevices enhancing the connectivity of peoples placehigh opportunity for IT corporationsGenensis
  4. 4. • These are the cutting edge technologies which areessential for corporations to sustain thiercompetitive advantage on global scale But thepoint is high inflation rates leading to the littlespending on the computer purchase by home userCont’d
  5. 5. • The unbranded PC’s are dominating in the indianmarket, indiviuals are the biggest buyers of theunbranded PCs In commercial sector buyers areusing major local and multinational brandsTrends in Indian PC Market
  6. 6. 0%10%20%30%40%50%60%PCs40%60%non-brandedbranded
  7. 7. • Indian market is growing for notebook PCs ascompared to the desktop PCs Users are shifting tothe TFT and LCD screen from CRT The young andfirst time user prefer notebook over desktop PCsContn’d
  8. 8. 2008ChartTitledesktop PCnotebook PC
  9. 9. • It is a mid-sized PC manufacturer based in india .Ramesh GM marketing , CFO Manoj Bayan, Marketing Manager ashutosh are worried aboutthe dipping demand of PCs in indian market and tryto find out the reasons of dipping demandAqua Marina Technologies
  10. 10. • PC sales in india during the first quater of -decline by• In next fiscal quater it is estimated that demandwould be decline by the• Whiteboxes has % market share so its the timefor company to make new plansDecline in Demand
  11. 11. • The branded PC manufacturers lacking the value tothe customer• Distributon channels needs to be tunned accordingto the needs of the customer• Lacking of the after sales service by PCmanufacturersFactors contributing to decline demand
  12. 12. • Home PC browser segment is clearly neglectedabout . million PC are sold in - and one thidof the PC are found thier way to the internetparlours One of the main reason is that thier is nochannel which will cater the needs of the home PCbrowsing segment
  13. 13. • Most of the owners of home PCs complain thatservice engineers do not respond promptly andsome dealers do no give them free service• Home PC browser need a reliable after sale servicefrom the vendors• These are the main reason that people opt fotr localmanufacturers and whiteboxesNeeds and complaints of the home PC segment
  14. 14. • Another main characteristic of the home user is thefear of obselence that people want those chipswhich will remain last for minimum next years andsupport the upgraded softwares
  15. 15. • Ashutosh marketing manager of the company subdivided the segment into three groups according totheir diffrentiated need, which is currently served assame needs by distribtuion channelsSub dividing the home PC segment
  16. 16. Segment Segment SegmentNot knowlegable aboutcomputersSomewhat knowlegableabout computersVery knowledgeable aboutcomputersNeeds reliable, prompt,after sale serviceNeeds prompt, reliableafter sale service and onways to upgradeDoes not need after-salesserviceNeeds training Does not need training Does not need trainingAre willing to pay little Are willing to pay apremium for these servicesVery price senitive
  17. 17. • These people are not knowlegable about computers,affordability and price is most sensitive The thingthey require the most is realiable after sale serviceUsually they purchase computers for their childrenslearning in schools The feel comfortable buyingPCs from nearby shopSegment
  18. 18. • In this segment customers wants availability, broadassorments, multiple brands and reliable after-salesservice and are willing to sacrifice some pricebenefits to get them Computer specialist are idealfor servicing these peopleSegment
  19. 19. • This consist of people who are very well-versedabout computers and are self-reliant, but who areprice sensitive and therefore buy from gray marketThese peoples enough know about computers tosevice small faults in their ownSegment
  20. 20. • Prepare macroeconomic forecast projectinginflation, interest rates, consumer spending andother variables• A survey of buyers• Take demand estimates from salerepresentatives, dealers and trade associations• Identify Which segment is easy to serveWhat aqua marina do next
  21. 21. • Company had to grow in order to survive in therecession and here was the home PC browsingsegment that had been neglected and that ought toexplode in the years to come, with increasingawareness about PCs increasing the buyer powerand the advent of the internetconclusion
  22. 22. • How did Ramesh , GM marketing of aqua marinatechnologies decide on which home browsingsegment to enter, taking into account the potentialand capabilities available or to be made available tothe firm?Question 1
  23. 23. • Ramesh should keep in mind things like purchasingpower of each segment, number of rivals exist ineach segment, potential interest of users andaligning them with company existing capabilities.Because aqua marina is mid-sizedcompany, segment 2 might be correct option foraqua marina because they are willing to paypremium for services.
  24. 24. • Explain the various dimensions of PC industryanalysis like actual and potential industry size, growth opportunities available for smalltechnology-based firms, strategic options availableto them by analyzing industry market potentials andusage gaps among home browsing segments.Question 2
  25. 25. • PC sales in india is growing from last few years by20% and laptops are become the first choice of firsttime users. Immense potential available for small ormid-sized companies because people are morecautious about price and want to have more saleservice , small firms can interact with users moreeffectively and can cater their needs.Answer
  26. 26. • As we see there is a gap between the needs of threehome PC browser segments, a mid sized companycannot invest heavily but could provide training andafter sale service to the customers. By this way theycan get market share which lead to revival fromrecession due to economic forces.cont’d
  27. 27. • Comment on the relevance and significance of fiveforces model for Aqua Marina Technologies forunderstanding the PC industry.Question 3
  28. 28. • Again the 5 forces model is highly important for theAqua Marina to analyse the industry enviornment.Substitute product offering is immensily high in theindustry many choices are available to the AquaMarina, supply of finished and semi finished goodsis high many suppliers available due to marketsaturation its an opprtunity for the firm.Answer
  29. 29. • Buyer bargaining power is also high in this industrybecause buyer have many options readily availableand they can switch to one brand to other brandwhich is an opportunity and threat to the firm thatone can attract others customer by offeringdifferentiated product in market.Cont’d
  30. 30. • Potential for new entrants is low because industry iscurrently saturated and new investor might notinvest in this industry due to financial losses.Cont’d
  31. 31. Any QuestionsThank You….